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 only to be found near the islands of the North Pacific. Small colonies of beavers have taken refuge on the shores of the most dis- tant rivers. It is the same with many, other animals, compelled to flee before the invasion of the hunters. The traps, once crowded with game, are now empty. The price of skins is rising just when a great demand exists for furs. Hunters have gone away in disgust, leaving none but the most intrepid and indefatigable, who now penetrate to the very confines of the American continent."

" Yes," said Mrs Paulina Barnett, " the fact of the fur-bearing animals having taken refuge beyond the polar circle, is a sufficient explanation of the Company's motive in founding a factory on the borders of the Arctic Ocean."

"Not only so. Madam," replied the Captain, "the Company is also compelled to seek a more northern centre of operations, for an Act of Parliament has lately greatly reduced its domain."

" And the motive for this reduction ? " inquired the traveller.

" A very important question of political economy was involved, Madam ; one which could not fail greatly to interest the statesmen of Great Britain. In a word, the interests of the Company and those of civilisation are antagonistic. It is to the interest of the Company to keep the territory belonging to it in a wild unculti- vated condition. Every attempt at clearing ground was pitilessly put a stop to, as it drove away the wild animals, so that the mono- poly enjoyed by the Hudson's Bay Company was detrimental to all agricultural enterprise. All questions not immediately relating to their own particular trade, were relentlessly put aside by the governors of the association. It was this despotic, and, in a certain sense, immoral system, which provoked the measures taken by Par- liament, and, in 1837, a commission appointed by the Colonial Secretary decided that it was necessary to annex to Canada all the territories suitable for cultivation, such as the Red River and Sas- katchewan districts, and to leave to the Company only that portion of its land which appeared to be incapable of future civilisation. The next year the Company lost the western slopes of the Rocky Mountains, which it held direct from the Colonial Office, and you will now understand. Madam, how the agents of the Company, hav- ing lost their power over their old territories, are determined before giving up their trade to try to work the little known countries of the north, and so open a communication with the Pacific by means of the North-west passage."